Question

_____ determine what sales volume must be reached before the company's total revenue equals total costs and no profits are earned.

Answer 1

Break even analysis determines what sales volume must be reached before the company's total revenue equals total costs and no profits are earned. It is the calculation of the point at which total revenue equals total cost. Break even analysis is helpful in letting businessmen know when their business will turn a profit so the prices of their goods or the amount of goods sold can be adjusted accordingly.